A Performance Appraisal (also known as a performance review) is the assessment of individual’s performance in a systematic way. It is a developmental tool used for all round development of the employee and the organization. The performance is measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility and health.
Typical Cycle of Performance Appraisal Explained
Performance Management is a quarterly / yearly review, where employees define the goals, objectives to be achieved and which need to be approved by manager.
Performance Management has 2 levels; one is setup and second is Process.
1. Performance Management Setup:
This process is carried by HR Department, where the HR defines the Core competency, Competency Levels, Performance Rating, Performance Date Range (Month, Quaerterly, Mide Year or Annual Reviews also the Maximum Potential Rating.
2. Performance Management Process:
This is the process carried out by the Employee and his Manager
a. Goal Setting:
Employee adds the effective goal start date, then adds the goals and then maximum scores to each goal. This is then approved by the manager.
b. Mid-Year Review / Quarterly:
After completion of mid-year, Employee defines what is achieved towards his goal and rate his own performance against the maximum scores.
Managers review it and add their comments and ratings.
You can have as many reviews as you like, you may choose to do it Monthly, Quarterly, Half-Yearly, Yearly or once in two months.
c. Year-End Review:
Year end, Employee defines his final statement of what is achieved towards his goals, his comments and his self-rating.
Managers then will finally review it and add comments and scores. The Manager will also add scores and development plan and measures to be followed.
Then there will be a 1-2-1 meeting between Manager – Employee – HR, they will review all information on the system and agree and appraisal, reasons and future course of action
As we understand this is a typical simplistic cycle for Performance Management explained, there are various other ways you can do the Appraisal exercise in HR Chronicle, you can have objectives defined for each individual role within the organization and create a complete different and dynamic matrix of scores. There are many more ways HR Chronicle can adapt to your Appraisal or Performance Management Exercise.
HR Chronicle defines a compact and robust process for performance appraisal which is most needed for any organization. To know more, or if you need help with your appraisal exercise, please contact us.